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a.
To calculate:
Introduction
Present value:
The current value of an investment or an asset is termed as its present value. It is calculated by discounting the
b.
To calculate: Present value of $16,600 in 5 years at 9%.
Introduction
Present value:
The current value of an investment or an asset is termed as its present value. It is calculated by discounting the future value of the investment or asset.
b.
To calculate: Present value of $26,000 in 14 years at 6%.
Introduction
Present value:
The current value of an investment or an asset is termed as its present value. It is calculated by discounting the future value of the investment or asset.
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Chapter 9 Solutions
FOUND.OF FINANCIAL MANAGEMENT-ACCESS
- What is the present value of $25,000 to be recieved in 15 years at a (a) 6.2 percent rate and (b) 9.6 percent rate? Explain why the present value is lower when the interest rate is higher?arrow_forwardWhat is the future value (FV) of $60,000 in five years, assuming the interest rate is 5% per year? A. $39,000 B. $65,090 C. $76,577 D. $68,919arrow_forwardHow much would $1, growing at 13.7% per year, be worth after 75 years? Select one: a. $18,248.03 b. $15,206.70 c. $18,704.24 d. $13,533.96 e. $15,358.76arrow_forward
- (Future value) To what amount will $4,900 invested for 9 years at 11 percent compounded annually accumulate? $4,900 invested for 9 years at 11 percent compounded annually will accumulate to $ ? (Round to the nearest cent.)arrow_forwardWhat is the total future value ten years from now of $400 received in 1 year, $350 received in 2 years and $900 received in 8 years if the interest rate is 5% per year? O a $2,047.15 O b. $2,100.11 Oc $2,299.15 Od. $2,129.89 O e. $2.254.44arrow_forwardWhat is the future value of $450 six years from now at 7 percent?arrow_forward
- 3. Determine the future values if OMR5,000 is invested in each of the following situations: a. 5 percent for ten years b. 7 percent for seven years c. 9 percent for four yearsarrow_forward3. Determine the future values if OMR 5,000 is invested in each of the following situations: a. 5 percent for ten years b. 7 percent for seven years c. 9 percent for four yearsarrow_forwardWhat is the present value (PV) of $40, 000 received ten years from now; assuming the interest rate is 5% per yeal? A. $20,873 B. $42,974 C. S24, 557 D. $26,000arrow_forward
- What is the present value of $250,000.00, 10 years from now @ 6%?arrow_forwardWhat is the future value in five years of $1,000 invested in an account with an APR of 10 percent, compounded semiannually? c. What is the future value in five years of $1,000 invested in an account with an APR of 10 percent, compounded monthly? d. What is the future value in five years of $1,000 invested in an account with an APR of 10 percent, compounded continuously?arrow_forwardFind the present value of the following future amount. $500,000 at 9% compounded annually for 25 years What is the present value? $ (Round to the appropriate cent.)arrow_forward
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
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